Q1 Press Release
SUPREMEIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
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Supreme Industries reported weak Q1 FY26 results with consolidated total income declining 1.19% YoY to Rs. 2,626.13 Cr, despite plastic goods volume growing 5.73% to 1,83,793 MT. Consolidated PAT fell 26% to Rs. 202.30 Cr from Rs. 273.37 Cr, while operating profit margin compressed sharply to 13.10% from 15.99%. Management attributed the profit decline to early monsoon break hurting agri piping sales and inventory losses from falling PVC prices. The company announced a ~Rs. 310 Cr acquisition of Wavin India's piping business (expected to close by July 31, 2025) along with a 7-year technology license with Wavin B.V. Netherlands. Capex of ~Rs. 1,350 Cr for the year will be funded entirely from internal accruals, and net cash surplus stood at Rs. 856 Cr.
Short-term sentiment may be negative as PAT declined ~26% YoY and margins compressed over 280 basis points on pricing headwinds. However, the Wavin acquisition and technology licensing could drive long-term scale and growth in the plastic piping division, while new order wins from BPCL and IOCL for composite LPG cylinders support the growth story.